The short answer

Enter your headcount, your compensation and your filing status. The calculator compares the year-one employer cost of CalSavers (always $0) against a 401(k) net of SECURE 2.0 credits, and shows what the owner can personally contribute under each — which is often the deciding number.

Written by Alfonso Aduna · CEO & Co-Founder, Aduna Capital · MBA

Last updated 2 September 2026 · How we check this

About this calculator. This tool is an illustration, not advice, and not a recommendation to buy or sell any security. Results are estimates based only on the figures you enter and the assumptions shown on screen. It does not account for your full financial picture, investment returns, market conditions, plan-specific fees, or your tax situation. Actual costs, contribution limits, and credits vary. Confirm your obligations with CalSavers at (855) 650-6916 and your CPA before making a decision. Aduna Capital LLC is not affiliated with, endorsed by, or sponsored by CalSavers, the California State Treasurer's Office, CalPERS, CalSTRS, or any other retirement system, employer or school district named on this page.

Your business

Eligible employees (excluding owner)

People who would be auto-enrolled.

Of those, non-highly-compensated

Earning under $160,000. Drives the startup credit formula.

Owner's W-2 compensation

Determines whether the owner can use a Roth IRA at all.

Owner's filing status

Roth IRA phase-out differs by status.

Employer match, % of pay

Set to 0 for no match. Not permitted under CalSavers.

Average employee pay

Used to estimate the cost of the match.

Estimated year one

—

CalSavers — employer cost—

CalSavers — owner can contribute—

401(k) — estimated admin cost—

401(k) — estimated match cost—

401(k) — SECURE 2.0 credits (year 1)—

401(k) — net employer cost—

401(k) — owner can contribute—

Assumptions used

2026 limits: 401(k) employee deferral $24,500; Roth IRA $7,500.
Roth IRA phase-out begins at $168,000 single and $252,000 married filing jointly.
401(k) administration estimated at $1,500 base plus $40 per eligible employee per year — a market midpoint, not a quote from any provider.
§45E startup credit: 100% of eligible costs for employers with 50 or fewer employees, capped at the greater of $500 or the lesser of $250 × NHCEs or $5,000.
§45T auto-enrollment credit: $500 in each of the first three years.
Match cost assumes every eligible employee defers at least the full match. Real take-up is lower, so this is deliberately conservative — a real quote will usually come in below it.
Employer contribution credits, state taxes, payroll integration costs and investment returns are excluded entirely.

This is an estimate, not a quote and not advice. Actual costs depend on your provider, plan design, payroll system and census. The output above should be used to decide whether the conversation is worth having — not to make a final decision.

Common questions

Why does the owner's income matter for CalSavers?

CalSavers is a Roth IRA, and Roth IRAs carry income limits. Above $168,000 filing single or $252,000 filing jointly (2026) the owner cannot contribute at all — a 401(k) has no income limit and a $24,500 deferral ceiling.

What does the 401(k) cost figure include?

An illustrative admin estimate of $1,500 plus $40 per employee, the match you entered, less the SECURE 2.0 credits at 50 or fewer employees. Real quotes come from providers; the point of the figure is the shape of the comparison, not the last dollar.

Does this account for the 51–100 employee credit tier?

Not on this page — it gives the startup credit only at 50 or fewer employees, which is the audience the comparison is written for. The tax credit calculator models the 50% tier for 51–100 employees.

Want the real numbers instead of an estimate?

We will get quotes from providers, apply the credits properly, and show you the arithmetic.

Book a plan review See the comparison